Business Business

20/05/2022 - 06:04

Improving the environment for investment to attract FDI

Foreign investment is an important impetus for the development of economy and society in Hue. It is a sector which is strong on funds, technology, management ability, business ability, organization ability, and participation in the global supply chain.

FDI enterprises contribute a lot to the budget 

Accounting for more than 26% of the budget 

Despite difficulties caused by the pandemic, the enterprises with foreign direct investment (FDI) in the province are still growing spectacularly. Many enterprises expand their production scales, taking advantage of the local labor force to make breakthroughs in production and business activities, at the same time, making a significant contribution to ensuring security in the face of difficulties caused by the pandemic.

The statistics partially prove that statement. In late 2021, the FDI sector achieved a revenue of more than USD1,200 million (15% higher compared with the same time before) and contributed USD129 million to the budget (19.5% higher,) accounting for 26.2% of the total budget of the province.

One of the bright spots of this sector is Carlsberg Vietnam Co., Ltd. This enterprise contributes the biggest budget (USD88.3 million) to the province, accounting for 68.4% of the total budget revenue from the FDI sector.

Interestingly, this year, despite the negative effect of the COVID-19 pandemic, many FDI enterprises, especially those in textile and garment area, are still growing strongly. Of which, Scavi Hue Company has invested in building a new factory in Quang Vinh Industrial Park in Quang Dien, which is expected to come into operation in the second quarter of 2022, and will create jobs for more than 8,000 local workers, thus contributing USD12 million to the budget (more than 3.5 times higher compared to 2020.)

According to Mr. Phan Quoc Son, Vice Director of the Department of Planning and Investment, besides contributing to the provincial budget, FDI enterprises also help create jobs for a large number of local workers, making a significant contribution to improving the quality of life for people. 

By the end of 2021, the number of employees in this sector reached more than 25,000 people, of which, the textile and garment enterprises employ many workers with higher average salaries compared with those of people working for the state and off-state sectors. The FDI sector also indirectly creates jobs for many workers in supporting industries or other enterprises in the supply chain.

It is undeniable that the FDI sector has contributed to improving technological level and is an important channel for Thua Thien Hue in particular and Vietnam in general to integrate more deeply both socially and economically with other countries in the region and the world with key branches such as electronics, industry, software, etc.

Attracting investment

With the advantage of a province located in the key economic region of the Central with Phu Bai international airport, Chan May deep-water port, and the world cultural heritage site, Thua Thien Hue has potential and opportunities to attract investment. In recent years, Thua Thien Hue has risen to become one of the top 10 provinces and cities of the country which attract FDI with many projects worth billions of dollars and has begun to shift towards technology as a priority, which is a strong point of Thua Thien Hue.

That switch can be seen in the provincial leaders’ thinking about investment. Besides traditional potential markets such as Korea, Singapore, Thailand, Japan, Hong Kong (China), in recent years, the province has stepped up investment promotion into the United States, Europe, and countries which can benefit from the fact that Vietnam joined bilateral and multilateral trade agreements. Thanks to that, more and more big investors have come to Hue to seek investment cooperation opportunities.

The fact that there are 114 FDI projects with the total registered capital of USD 4 billion, and that in the most difficult year of 2021, the province still granted 4 new investment registration certificates for 4 FDI projects with the total registered capital of USD169.1 million (equals VND3,873 trillion), which has partially demonstrated the innovation in promoting investment.

Many key projects which have been granted investment registration certificates this year such as the software park, the centralized information technology, the production of current transformers, the extended circulating wastewater treatment system, the agricultural produce processing factory are all related to the priority area of high-tech industry.

These projects, when put into operation, will not only contribute to the budget, but also make an important contribution to creating highlights in the field of technology and software, and increase exportation.

According to Mr. Phan Quoc Son, one of the biggest successes in investment promotion is that Thua Thien Hue is building a friendly business environment, reducing unofficial costs by increasing business environment and competitiveness indexes such as PCI, PAPI, PAR Index, etc.

At the same time, the province carries out the assessment of competitiveness abilities of departments, branches, and districts in an open manner, listening to entrepreneurs in order to gradually improve support activities and remove difficulties for each project which is being implemented in Thua Thien Hue.

Also according to Mr. Son, realizing that FDI investors in the province are the most active factor in promoting FDI investment. That is why the province always endeavors to support, “takes care of” the FDI projects, creates favorable conditions for the enterprises to develop, coordinates and connects them with the entrepreneur community of the province, puts start-up funds into operation effectively, and continues to call for capital for creative start-up projects in the province. 

This year (2022), Thua Thien Hue has developed as well a plan and implemented investment promotion by strengthening investment attraction, supporting, speeding up the implementation of projects, and punishing enterprises which violate the investment schedule.

At the same time, the province is using various ways of promotion, introducing  online investment, actively participating in online forums organized by central ministries and branches to introduce and connect with potential investors, and reviewing investment criteria in order to be able to choose potential investors and brand names.

Story and photo: HOANG LOAN

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